lauryns wages were not as much as she had budgeted. how can her budget be modified so there will be a…

lauryns wages were not as much as she had budgeted. how can her budget be modified so there will be a positive actual net income?\nmonthly budget\tbudgeted amount\tactual amount\nincome\nwages\t$1050\t$775\nexpenses\ncar - gas, insurance\t$250\t$\n\t$150\t$\nfood\t$120\t$\nclothes\t$300\t$\ncollege savings\t$75\t$\nrecreation\t$25\t$\nnet income\t$130\t$

lauryns wages were not as much as she had budgeted. how can her budget be modified so there will be a positive actual net income?\nmonthly budget\tbudgeted amount\tactual amount\nincome\nwages\t$1050\t$775\nexpenses\ncar - gas, insurance\t$250\t$\n\t$150\t$\nfood\t$120\t$\nclothes\t$300\t$\ncollege savings\t$75\t$\nrecreation\t$25\t$\nnet income\t$130\t$

Answer

Explanation:

Step1: Calculate the difference in wages

The budgeted wages are $1050 and the actual wages are $775. The difference is $1050 - $775=$275.

Step2: Determine how much to reduce expenses

To have a positive net - income, the total expenses need to be reduced by at least $275. Expenses can be reduced in any combination among car - gas/insurance, food, clothes, college savings, and recreation. For example, if we assume reducing expenses evenly among all non - essential expense categories (food, clothes, college savings, recreation), the sum of these non - essential budgeted expenses is $150 + $120+ $300 + $75 + $25=$670.

Answer:

Reduce total expenses by at least $275, which can be done by cutting back on car - gas/insurance, food, clothes, college savings, and/or recreation expenses in any combination.